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LCD panel business investment, in quite a long time, almost impossible to rely on product profitability to get out, but as the expansion of production lines, and constantly settling for the production line of expected return. This is the LCD panel investment called no highway exit reasons.

In the LCD display industry, saying the classic, [link widoczny dla zalogowanych] saying TFT investment is no exit the highway . Display Search Zhang Bing, director of China research, told reporters the phrase in describing large size TFT LCD investment, particularly accurate. Display Search, a renowned international display industry research.

Konka Group has worked for many years in the Zhang Bing personally experienced China s color TV industry from the CRT era to the TFT (LCD) the [link widoczny dla zalogowanych] transformation of the times. In his view, the liquid crystal display industry, compared with the previous CRT TV, the biggest difference is that the former has a very large and complex industrial chain.

CRT TV only a few simple Di parts, Zaiguoneijiu Keyixingcheng complete industrial chain; and LCD Jishu Zeshe Ji physical, chemical, optical Deng complex field, it involves a number of Nei Ye Jing panel 10 components and several hundred kind of material, no company can independently accomplish the integration of the whole industrial chain, and therefore formed a large cluster.

Until 2007, LCD technology was not in the field of large size competition from other display technologies, focusing on small size applications such as computer monitors. But with the rapid expansion and scale of the industry to compete in the rapid production declines in the cost of LCD TV to become the new darling of the market, all manufacturers then joined the high generation production line (6 Line and over) among the competition.

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With the rapid growth of panel production capacity, steadily increasing end consumer market soon trapped in a glut of the situation and lead panel prices fell sharply and panel manufacturers in the loss.

When the growing consumer market was finally able to digest the existing capacity, the larger size of the production line put into operation once again set off new business cycle, this is the LCD industry calls LCD cycle.

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In this brutal cycle of pressure, the liquid crystal panel of the profits from earnings 30 to 40 loss of sharp fluctuations in price volatility can not resist the enterprise can only frustration out.

In order to withstand price fluctuations brought about by the crisis, panel enterprises, rising productivity has [link widoczny dla zalogowanych] been the efficiency of production lines, on the other hand continue to invest heavily in the construction of higher generation production lines, with a view to the emerging market for high end excess profits .

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In this investment mode, exit the LCD panel industry Touzi Zhe For the investment projects, mostly by way of mergers [link widoczny dla zalogowanych] and acquisitions, production and related facilities for Zhengti Xian transfer. BOE acquired South Korea s current LCD panel [link widoczny dla zalogowanych] production line, that is the way to complete the acquisition subsidiary.

In this industry, the investment process, the pure of industry funds or Touzi Zhe Bixu [link widoczny dla zalogowanych] carefully calculated, Yi Baozhengshougou line Nenggou after the Shengchan profits in the short term period so as to maintain the Houxushengcun; Er for Gengjiazhuzhong industry Ladong effect of Difangzhengfu Eryan , but can tolerate losses for longer panels business and through various preferential policies to support enterprise development.

According to Zhang Bing, the global liquid [link widoczny dla zalogowanych] crystal display industry s annual output of about 500 billion dollars, In [link widoczny dla zalogowanych] addition to LCD, the only IT, automotive and communications industries have such a big production value, [link widoczny dla zalogowanych] it will cause great concern in [link widoczny dla zalogowanych] the government.

His concern is [link widoczny dla zalogowanych] that while large size LCD panel market in the country has enough space and demand, but if the local government led investment cycle, the rhythm can not Tazhun industry, may repeat the same line of investment on behalf of BOE 5 peak investment output trough cycle, so that panel company expanding into a new trap.